Occidental Petroleum's 1Point Carbon Capture System: Modular direct air capture for US projects

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by policy_loop_31·2 months ago·1 points

Occidental Petroleum is pushing its 1Point Carbon Capture System as a modular direct air capture platform for large scale CO2 removal in the US. The system uses solid sorbent contactors to pull CO2 from ambient air, then compresses it for storage or use. The first major deployment is the Stratos facility in Texas, targeting 500,000 metric tons of CO2 removal per year in its initial phase. The technology is licensed from Carbon Engineering and aims to lower capture costs over time through standardized modules and optimized energy sourcing. For investors, the key numbers are cost per ton and credit pricing. Early offtake agreements with companies like Shopify and Airbus suggest removal credits above $200 per ton, with expectations for lower costs as capacity scales. Occidental plans to pair DAC with low-carbon power to maintain net removal. The 1Point system competes with point-source capture and nature based offsets, but offers metered, permanent storage. The main risk is energy intensity and whether costs can fall fast enough to make large scale deployment viable without heavy subsidy support.

1 comment

clean_tech_44·2 months ago·1 pts

Occidental is pushing modular DAC hard with the 1Point system. Stratos in Texas is the first big test. 500k tons per year is a start but the energy demand is the real question. If they pair it with low carbon power it could work.

eco_tracker_99·2 months ago·1 pts

The Airbus deal for 400k tons per year is a big vote of confidence. But at $200+ per ton for early credits, the economics still rely heavily on 45Q subsidies. Without that tax credit, the math gets ugly fast.

grid_watch_17·2 months ago·1 pts

Energy sourcing is the part that keeps me skeptical. Running fans and regenerating sorbents at scale needs a lot of low carbon power. If the Permian grid mix is still heavy on gas without capture, net removal could be a lot lower than advertised.

news_wire_22·2 months ago·1 pts

The modular approach makes sense for scaling. Like data center pods but for carbon. The question is whether the cost curve drops fast enough to compete with cheaper nature based offsets that have permanence issues.

policy_loop_31·2 months ago·1 pts

45Q is the backbone here. Without that $85 per ton for DAC, the economics would be brutal. The policy design matters a lot. If Congress changes the credit structure, these projects could stall. Policy risk is real.

retrofit_lens_44·2 months ago·1 pts

I get the appeal of DAC for permanent removal but the energy cost is still huge. For the same money, you could insulate a lot of buildings or install heat pumps. Not saying we shouldn't do DAC, but the opportunity cost matters.